Carbon Credits

CARBON CREDIT PROJECT

The carbon stock exchange project was launched by Vision 2050 Forestry (VTF) as a pilot project in 2016 to provide an opportunity to people across the globe to trade carbon credits. The pilot phase was pretty successful, bringing on board 4000 people.

The FBR-PACE platform as it is dubbed is a platform for trading carbon sequestrated by VTF’s existing 200 million trees as well as the future 1 billion trees to be planted within the next five years (2019-2024). The 200 million trees sequester about 10,000 tons of carbon per day and have a potential carbon yield increase of 5% per tree, per annum. The carbon conserved in the trees can be traded, and it is projected to appreciate in value year after year due to the high demand for sequestered carbon dioxide (Greenhouse gas) on the international market.

The economic value of the gaseous pollutants i.e. carbon dioxide, methane etc sequestered from atmosphere through forestry will appreciate in value due to the rapidly manifesting climate change effects.Effective October 2018, VTF floated 150 million Carbon Stocks valued at One Hundred United States dollars (US$100) per stock. The carbon stocks traded on FBR PACE platform are backed by scientifically proven methods of measurement.

An electronic device which is to be installed on a VTF plantation measures the carbon sequestered in the said plantation and automatically transmits the recording to an online trading platform on second-by-second basis. Each buyer of stocks therefore is able to observe in real time the recordings transmitted by the device and by extension the value of carbon sequestered. This value determines the earnings of the buyer on daily basis, which accumulates at the end of the year to establish the total amount earned by the buyer per annum.

Carbon Stock or TSP buyers rightly would want to know how secure their funds are. The single most important assurance for the FBR- PACE platform is that it is backed by 200 million certified trees, which means that in case of system or market failures, VTF can rely on the actual tree stock to pay back stock buyers’ money in good time. Besides, the

1. project is undergoing an endorsement process through the Ministry of Finance & Economic Planning and within a year from January 2019, the United Nations or internationally approved certification agency will certify the project. Carbon Stock or TSP Buyers can also observe the trees backing their stocks live online, which also means that once a tree has been taken away, its online representation by a twinkling green signal turns into red. This signal alerts the buyers across the globe to enquire with VTF why the tree backing their purchase no longer exists.

Currently, VTF has two offices to execute the marketing of the two products launched under the project to prospective clients:

PRODUCT DESCRIPTION

The two products being sold currently are:

(i) Tree Stock Policy (TSP) – TSP is a product launched under the Vision 2050 Forestry’s carbon credit project with the intention to attract more people

2. and organizations to direct their savings into plantation ownership and development. This is to green and clean the environment. With TSP, no matter where they sit on the globe, everybody can own a tree, earn money and thereby contribute to the fight against global warming – earn bragging rights in addition. A TSP buyer owns at least five(5) trees for 10 years.

As each tree grows, its value in terms of timber and carbon sequestered appreciate. It is the appreciation in value that is paid back to the buyer as earnings. At the end of the 10th year the tree is either harvested and sold to timber merchants or the standing tree is sold to another interested buyer for it to continue to green the environment. VTF cites the example of trees it planted in 2008, some of which currently being measured for sale to a Chinese timber merchant at US$ 500 per tree.

(ii) FBR – PACE Carbon Stock – This product is based on one important intangible value in every tree: the absorbed greenhouse gas called carbon dioxide. It is the main culprit for global warming. Because it is a causative agent of global warming, it can be sold to pollutants such as the airlines or automobile companies.

The FBR-PACE platform is introduced for buyers and sellers to trade this important commodity. By way of example, a deep-freezer manufacturing company in South Korea that has exceeded its permitted annual pollution limits must purchase carbon reserves on the platform in order to continue to run its factory.